A college or university that received qualified tuition and related expenses on your behalf is required to file Form 1098-T with the Internal Revenue Service (IRS). The Taxpayer Relief Act of 1997 states that educational institutions are required to file and furnish a Form 1098-T to students whom payments for qualified billed tuition and related expenses were received. The information being reported to the IRS verifies your enrollment with regard to certain eligibility criteria for the Hope Tax Credit, the Lifetime Learning Tax Credit and the Higher Education Tuition and Fees Deduction. However, the enrollment information by itself does not establish eligibility for either credit or deduction.
More information can be found here http://www.sanjac.edu/1098-t-tuition-statement